Workday reported strong financial results for the fourth quarter and full year of fiscal 2025, demonstrating consistent revenue growth and expanding its subscription business. The company’s total revenue for Q4 2025 reached $2.211 billion, a 15.0% increase year-over-year, with subscription revenue growing by 15.9% to $2.040 billion. For the full fiscal year, total revenue increased by 16.4% to $8.446 billion, while subscription revenue climbed 16.9% to $7.718 billion.

Workday’s operating income for the quarter was $75 million, or 3.4% of revenue, compared to $79 million in the prior year, with results impacted by $75 million in restructuring expenses. However, non-GAAP operating income was $584 million, or 26.4% of revenue, up from $462 million in the previous year. Similarly, diluted net income per share was $0.35 for Q4 2025, compared to $4.42 in the prior year, which had benefited from a $1.1 billion tax allowance release. On a non-GAAP basis, diluted net income per share was $1.92, up from $1.57.

Workday's backlog for 12-month subscription revenue reached $7.63 billion, a 15.2% increase, while total subscription revenue backlog rose 19.7% to $25.06 billion. The company also improved cash flow, generating $2.461 billion in operating cash flow, a 14.5% increase year-over-year, with free cash flow of $2.192 billion.

During the year, Workday repurchased 2.9 million shares for $700 million, and as of January 31, 2025, it held $8.02 billion in cash, cash equivalents, and marketable securities.

Looking ahead, Workday projects fiscal 2026 subscription revenue of $8.8 billion, reflecting 14% growth, with a non-GAAP operating margin of approximately 28%. For the first quarter of fiscal 2026, subscription revenue is expected to reach $2.05 billion, with the same non-GAAP operating margin target.

Key business highlights include the announcement of the Workday Agent System of Record for managing AI agents, expansion into Australia and New Zealand with Workday Student, and securing new customers such as First-Citizens Bank & Trust, St. Louis County, and UnityPoint Health. Workday also strengthened partnerships with Randstad, TechWolf, and MetLife.

The company remains focused on investing in AI-driven solutions for HR and finance while optimizing costs for sustained growth. Workday will host an earnings call to discuss these results in detail.